ITAT says Transfer Pricing Cannot Recharacterise Commercial Payments on Hindsight

Tech Mahindra's ₹440.12 crore exclusivity payment to British Telecom secured defined commercial rights, including a 90-day exclusive negotiation window for Project Andes. The Tribunal held that the payment could not be treated as a sham or loan merely because it was unconventional and deleted the consequential notional-interest adjustment; it similarly deleted the adjustment on the ₹23.36 crore transition fee.